In the latest Prosperity Index, Slovakia moved up one place compared to last year to 23rd place among the 27 countries of the European Union. Despite the slight improvement, the country still remains at the bottom of the ranking and, compared to the more advanced EU states, continues to lag behind especially in terms of economic performance. In 2026, Slovakia will be among the weakest growing economies in Central Europe, results from the fourth edition of the Prosperity Index, which was presented by the Slovak Savings Bank (SLSP) on Thursday.
“Households have improved a little in that their housing expenditure relative to disposable income has been doing a little better than other countries. This is due to the fact that interest rates on mortgage loans fell last year, at the same time energy prices for most people were capped,” explained the reasons for the slight improvement of Slovakia in the Prosperity Index, SLSP chief economist Mária Valachyová.
According to the expert, this situation will probably change this year, because interest rates went up again and the European Central Bank will probably increase them. Energy prices also cannot be capped forevery. “Household expenses will probably go up,” she stated.
Slovakia’s low position in the ranking is related to the fact that Slovakia is still economically poorer compared to Western countries. “Our competitiveness has also deteriorated. We have raised taxes perhaps too much, corporate income taxes are high,” pointed out Valachyová, saying that taxes on natural persons also increased and the transaction tax did not help either. According to her, an excessive tax burden does not help competitiveness.
She recommended increasing spending on research and development, education, more use of artificial intelligence and digitization, as well as more integration with Europe, benefiting from the benefits of EU membership, including better use of European funds and improvement of the business environment. “We should have the courage to reverse steps that do not bode well for the economy, such as high taxes and reduce them. We also need to better prepare for the possibility of a hybrid military threat,” pointed out Valachyová.
According to analysts, in 2026 Slovakia will be one of the weakest growing economies in Central Europe. The estimate of GDP growth at the level of 1% lags behind Poland, the Czech Republic and Hungary, while the domestic economy will be dampened mainly by high taxes, cautious household consumption and an uncertain foreign environment. A significant increase in public spending in recent years has not brought higher economic growth.
Sweden, the Netherlands, Ireland, Denmark and Slovenia top the list of the Prosperity Index. Of the neighboring EU countries, Austria is in 11th place, Poland in 12th, the Czech Republic in 15th, and Hungary in 24th place.
“Economic growth in the last five years has been lower in our country than in neighboring countries. As I mentioned, high taxes do not help us. Our advantages still include having the euro, a relatively cheap and educated workforce,” noted Valachyová. According to her, the inflow of new foreign investments is no longer as great as in the past. Structural reforms and better education are needed to prevent young people from going abroad.
SLSP General Director Michaela Bauer described the trust of citizens and investors in the country’s future as one of the key prerequisites for Slovakia’s long-term prosperity. “If we succeed in strengthening it together across the public and private sectors, we have a chance to once again embark on the path of convergence and gradual approximation of Slovakia’s standard of living to the most advanced countries in Europe.” added.
According to analysts, Slovakia can move higher only if it resumes its growth story. Change must occur not only at the macro level, but also at the individual level. Otherwise, we will not come close to the standard of living of the most advanced countries in Europe.
